In our last post about NPS and CSAT, we went over the differences between the two, as well as why you should be using both.
Yup, that’s right. You should measure satisfaction on both a transactional and relationship level. And NPS and CSAT are two systems with which you can do so.
So You Mean NPS and CSAT...
That's right. Because NPS and CSAT serve different purposes, it's important to deploy both strategically. Measuring client satisfaction on a relationship level, e.g. with NPS, might not make sense after every service transaction. Maybe it comes along with a quarterly service review, or other regular but infrequent assessment.
And measuring on a transactional level, as with CSAT, makes more sense when you do it frequently. That's because the more data you have, the better you understand how your service delivery is actually performing. Measure CSAT infrequently, and you run the risk of only getting the outliers: that is very satisfied or unsatisfied clients, when the true data lies somewhere in between.
These two scores ultimately measure different aspects of your service delivery process. And most of the time, they provide complementary results that can help give you a better overall picture of how well you’re doing, in the eyes of your clients.
Timing is Everything: When to Measure Relationship Satisfaction and When to Measure Transaction Satisfaction
The best time to measure how satisfied clients are with the overall relationship they have with your company is when they have a chance to step back and look at the bigger picture.
From an account management perspective, there are key times to undertake this kind of measurement. You could implement an NPS measurement as part of a quarterly review process. Or you could design a bi-annual survey campaign that you prepare clients for in advance, and use as an opportunity to thank them for their business.
The most important aspect of measuring relationship satisfaction is to do it in a way that allows your clients to reflect on the variety of interactions they’ve had with your company, rather than basing their rating on the most recent one.
Understanding how your clients perceive you in a bigger-picture way is an invaluable part of client retention, loyalty, and growth.
On the other hand, to get a clear picture of how well your company performs on a transactional level, you need a large amount of data across a range of transactions.
So not only should transactional satisfaction be measured frequently, it should be measured in a way that captures a lot of responses. A higher response rate means you’re hearing from a larger, wider range of clients -- which is important.
If your survey response rates are low, say 1 to 5 percent, it means you’re only hearing from clients who have had either really great or very bad experiences. But it’s the people who are somewhere in the middle that will give you the true picture of your service delivery.
The key then is to measure transactional client satisfaction in a way that requires the least amount of effort from your clients.
According to Forbes: “Short, simple customer surveys can lead to response rates of 50 percent or more, which is considerably higher than the 0.5 to 2 percent response rates many organizations get from client surveys.”
Got it? Great! For more info on how you can strategically use NPS and CSAT to improve the loyalty and profitability of your clients, check out our free white paper.
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